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Viasat (VSAT) Surges 31.4% YTD: Will the Upside Continue?
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Viasat, Inc. (VSAT - Free Report) shares have experienced an impressive 31.4% surge since the beginning of the year, backed by healthy top-line improvement, solid momentum in commercial network and government systems vertical. Earnings estimates for the current fiscal year have increased 138.68% year over year, indicating a potential for robust growth. With strong fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a favorable investment option at present.
Image Source: Zacks Investment Research
Growth Drivers
Headquartered in Carlsbad, CA, Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. The company serves high-bandwidth, high-performance communications solutions to the public, as well as military, enterprises and government enterprises.
Viasat has confirmed the successful launch of its ViaSat-3 Americas satellite on May 1, 2023. The company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will likely have nearly eight times the throughput of ViaSat-1 and ViaSat-2 combined. Viasat is making steady progress on the payload module for the second ViaSat-3 (EMEA) in its facilities.
The ViaSat-3 constellation will establish a global broadband network with enhanced network capacity, offering end users better choices for affordable, high-quality, high-speed Internet and video streaming services. As a result, the significant market traction of the ViaSat-1 and ViaSat-2 satellites, along with the strategically planned ViaSat-3 satellites, are projected to give the business a significant competitive advantage over its rivals.
In the fourth quarter of fiscal 2023, the company achieved a 10% year-over-year increase in revenues. Commercial Networks is witnessing healthy traction, driven by strength in commercial air in-flight connectivity (IFC) terminals, satellite networking programs and antenna systems products. Additionally, robust demand for government mobile broadband solutions, cybersecurity products, and tactical satcom radio products are significant factors, driving growth in the Government Systems segment.
Viasat expanded its IFC commercial fleet to 2,230 aircraft. It added Etihad Airways as a new airline partner and expanded Delta Air Lines’ free Wi-Fi initiative, resulting in increased bandwidth demand, revenue growth and greater passenger engagement.
Viasat is proactively expanding its portfolio through a combination of technological advancements and strategic acquisitions. It recently acquired Inmarsat, an enterprise with 40 years of experience with a diverse portfolio of mobile communications satellite networks, boasting a multi-layered global spectrum. Additionally, VSAT is making steady progress on its Arctic Satellite Broadband Mission, in partnership with Space Norway, demonstrating its commitment to meeting the growing connectivity demand in the Arctic Region. These developments accentuate management’s farsighted approach to building a strong foundation for a long-term commercial expansion.
The company’s net debt was reduced from $1.6 billion to $1.1 billion at the end of the fourth quarter of fiscal 2023. The sale of the Link 16 TDL business has improved Viasat’s liquidity, which is likely to enhance flexibility in financial operations to some extent.
Viasat delivered an earnings surprise of 7.98% in the last reported quarter. The company currently appears to be an enticing investment option in this volatile market.
Other Key Picks
Akamai Technologies, Inc. (AKAM - Free Report) , currently sporting a Zacks Rank #1, delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Akamai is a global provider of content delivery networks and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1 at present, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 13.91%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Juniper Networks, Inc. (JNPR - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 5.24%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. It has a long-term earnings growth expectation of 7.32%.
Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. It caters to the networking needs of enterprises, public sector organizations and service providers across the globe.
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Viasat (VSAT) Surges 31.4% YTD: Will the Upside Continue?
Viasat, Inc. (VSAT - Free Report) shares have experienced an impressive 31.4% surge since the beginning of the year, backed by healthy top-line improvement, solid momentum in commercial network and government systems vertical. Earnings estimates for the current fiscal year have increased 138.68% year over year, indicating a potential for robust growth. With strong fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a favorable investment option at present.
Image Source: Zacks Investment Research
Growth Drivers
Headquartered in Carlsbad, CA, Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. The company serves high-bandwidth, high-performance communications solutions to the public, as well as military, enterprises and government enterprises.
Viasat has confirmed the successful launch of its ViaSat-3 Americas satellite on May 1, 2023. The company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will likely have nearly eight times the throughput of ViaSat-1 and ViaSat-2 combined. Viasat is making steady progress on the payload module for the second ViaSat-3 (EMEA) in its facilities.
The ViaSat-3 constellation will establish a global broadband network with enhanced network capacity, offering end users better choices for affordable, high-quality, high-speed Internet and video streaming services. As a result, the significant market traction of the ViaSat-1 and ViaSat-2 satellites, along with the strategically planned ViaSat-3 satellites, are projected to give the business a significant competitive advantage over its rivals.
In the fourth quarter of fiscal 2023, the company achieved a 10% year-over-year increase in revenues. Commercial Networks is witnessing healthy traction, driven by strength in commercial air in-flight connectivity (IFC) terminals, satellite networking programs and antenna systems products. Additionally, robust demand for government mobile broadband solutions, cybersecurity products, and tactical satcom radio products are significant factors, driving growth in the Government Systems segment.
Viasat expanded its IFC commercial fleet to 2,230 aircraft. It added Etihad Airways as a new airline partner and expanded Delta Air Lines’ free Wi-Fi initiative, resulting in increased bandwidth demand, revenue growth and greater passenger engagement.
Viasat is proactively expanding its portfolio through a combination of technological advancements and strategic acquisitions. It recently acquired Inmarsat, an enterprise with 40 years of experience with a diverse portfolio of mobile communications satellite networks, boasting a multi-layered global spectrum. Additionally, VSAT is making steady progress on its Arctic Satellite Broadband Mission, in partnership with Space Norway, demonstrating its commitment to meeting the growing connectivity demand in the Arctic Region. These developments accentuate management’s farsighted approach to building a strong foundation for a long-term commercial expansion.
The company’s net debt was reduced from $1.6 billion to $1.1 billion at the end of the fourth quarter of fiscal 2023. The sale of the Link 16 TDL business has improved Viasat’s liquidity, which is likely to enhance flexibility in financial operations to some extent.
Viasat delivered an earnings surprise of 7.98% in the last reported quarter. The company currently appears to be an enticing investment option in this volatile market.
Other Key Picks
Akamai Technologies, Inc. (AKAM - Free Report) , currently sporting a Zacks Rank #1, delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Akamai is a global provider of content delivery networks and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1 at present, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 13.91%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Juniper Networks, Inc. (JNPR - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 5.24%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. It has a long-term earnings growth expectation of 7.32%.
Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. It caters to the networking needs of enterprises, public sector organizations and service providers across the globe.